Access refers to responsible investment by describing its ESG approach at investment strategy level as well as at fund selection and co-investment levels.
As a signatory of the Principles for Responsible Investment instituted by the United Nations, Access will pay particular attention, whenever possible, to the General Partners’ willingness to respect international law on human rights, and to apply Environmental, Social, and Governance (ESG) criteria to their investment practices. Prior to each investment, Access undertake to analyze thoroughly how the Fund manager or the co-lead investor deals with environmental issues, how they address social items and how aligned are the management teams with shareholders and investors. Access acknowledges that social and environmental issues are material to the sustainable growth and financial outlook of a company and therefore to the value of investments.
At fund selection level, Environmental, Social, and Governance (“ESG”) aspects are also reviewed through a specific Socially Responsible Investment questionnaire sent to the fund management team. The questionnaire’s purpose is to find out whether, and how, the manager takes ESG criteria into account for their investment decision and monitoring processes. Access also seeks a written commitment (side letter) from the fund manager to use their reasonable best efforts to incorporate ESG criteria to the management of their portfolio companies and report back to Access on the progress and outcomes of ESG related values and potential risks at least annually.
Analyses of ESG risks & opportunities are embedded in the following documents:
- STEP 2: document consisting in a detailed presentation prepared by the Investment team and providing with a more advanced ESG assessment of value creation opportunities or risks for potential investments. The “step 2” documentation is used to support the Investment Committee in its final decision.
- Legal documentation: written engagement from the underlying fund manager to use reasonable best efforts to incorporate ESG criteria in the management of its portfolio companies and to report annually on the ESG performance and progress in a portfolio company and to provide Access with an update if significant ESG issue arises in a portfolio asset.
As part of the investment monitoring, Access will apply its processes to assess the level of integration of ESG aspects within portfolio companies.
PPMs as well as DDQs or any other marketing materials include a description of Access' ESG approach.